Landmark convertible preferreds expected at $50 million, Libor plus 420 bps to 470 bps

By Abigail W. Adams and James McCandless

Portland, Me., March 23 – Landmark Infrastructure Partners LP plans to price a $50 million offering of $25-par series C floating-to-fixed rate cumulative perpetual redeemable convertible preferred units after the market close on Tuesday with price talk for a rate of Libor plus 420 bps to Libor plus 470 bps, which equals an implied dividend of 6.5% to 7%, according to a market source.

The initial conversion premium is fixed at 15%, according to a market source.

The convertible preferred units will float for the first seven years and then switch to a fixed dividend of 9%, according to a market source.

Raymond James and UBS Investment Bank are joint bookrunners for the offering, which carries a greenshoe.

Dividends will be paid quarterly.

There will be a put option on the convertible preferred units in 2025, 2028 and each subsequent five-year anniversary, according to a 424B5 filing with the Securities and Exchange Commission.

The convertible preferred units are freely callable at par after a specified date in 2025. The convertible preferred units will be listed on Nasdaq under the ticker “LMRKN.”

Proceeds will be used to repay indebtedness under Landmark’s revolving credit facility. Landmark is an El Segundo, Calif.-based real estate property manager.

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